Can You Deduct Charitable Contributions on Schedule C?
Schedule C is a federal tax form that self-employed people and one-owner businesses use to report their business profit or loss. Though the Internal Revenue Service does not allow such businesses to deduct charitable contributions on Schedule C, you may be able to deduct some payments to nonprofit organizations.
If you are a sole proprietor making a cash contribution to a nonprofit organization, you can only report it as a deduction on Schedule C if it has some business purpose. For example, if you give $50 to your local church as part of a tithing campaign, it is not deductible on Schedule C. However, if you spend $50 to buy an ad in the program for the church Christmas pageant, you can deduct that expense on Schedule C.
If your business makes a straight charitable donation, with no business benefit attached, you may claim it on Schedule A if you operate as a sole proprietorship, partnership or S-corporation.